subject: Tax Software Decisions When Starting Your Own Tax Business - Online Vs Installed [print this page] Tax Software Decisions When Starting Your Own Tax Business - Online Vs Installed
Positives: Desktop installed software is as reliable as your computer or tax office network. This allows you to control your backup procedures, and puts the power in your hands to control outages. Desktop tax software also allows the tax office to maintain a more controlled environment for return preparation. A preparer cannot access return information or preparer returns from any PC other than a PC that has the software hard installed on it. Desktop tax software allows for mobile tax preparation service, but would require that the preparer bring their own laptop with the program installed on it. In a mobile tax preparation setting, with hard installed software, you are not reliant upon having an internet connection to be able to prepare tax returns or print signature pages. You or your mobile preparer can simply prepare the return and wait to get back to the office to transmit any returns to be electronically filed. Desktop installed software platforms are also the oldest versions of tax software programs available and have been through many more years of testing and revising than their online alternative options.
Negatives: To utilize more than one preparer or more than one PC for tax preparation in an office setting you must network your office PCs and designate one as the "server". If a PC leaves the office network, such as taking a laptop home, you lose access to your tax program unless additional home to office networking is setup. Software that is installed on your office network or personal computer is only as safe as the safety parameters you physically have in place. Hard installed programs should always have a backup program running to an off-site storage option in the case of a complete system crash or office disaster such as a fire or theft.
Conclusions
Both Online and Hard Installed tax software have their respective positives and negatives, but after 7 years in the tax preparation business I can tell you that being out of commission due to an internet outage, or a server crash somewhere on the other side of the country is absolutely unacceptable. Online software takes the control out of your hands and puts it in the software company's home. Many tax businesses can attest to the frustration of not being unable to prepare returns the first 2 weeks of last tax season due to online software issues from one of the largest tax software providers in the industry! If I am making the choice for my start-up tax preparation office, I want to be in control, and if something goes wrong, I have the ability to fix it! Hard installed software is my choice when starting a tax preparation business.
My job is helping rookies get into the tax preparation businesses and be profitable their first year. I would like to give you some more insight on what is working for others in the tax preparation industry. Click here for more information on non-franchise tax office startup options and low cost - high return on investment marketing programs
Joe Rogers is the president of Federal Direct Tax Services where he focuses on profitability and marketing programs for individuals looking to start an income tax business.
